Is the 1% Really About Money?

A Deeper Dive into the Mechanics of Wealth and Opportunity

Ah, the elusive 1%. A term that has become synonymous with wealth, power, and sometimes, infamy. But is this concept really just about money? I'd argue that it's not. While the media loves to sensationalize the "bad apples" among the wealthy elite—let's call it the 0.01% within the 1%—the narrative often misses the mark. It's like applying the 80/20 rule to the 1%, where 99% of the news focuses on the 1% of the 1%.

Ironically, those who lament about being in the 99% in the United States are often in the global 1% when you consider income and living standards worldwide. But let's set aside the irony for a moment and delve into what I like to call "being plugged in," a concept that transcends both local and global paradigms.

If my late father were to miraculously reappear today, he'd likely spend months in awe, trying to comprehend the science fiction that has become our reality. Flat-screen TVs, GPS systems that pinpoint your location, and smartphones that are essentially pocket-sized supercomputers—the list is endless. Unlike a frog in slowly boiling water, I've lived through these incremental changes and can attest to the opportunities they present.

As Peter Diamandis aptly puts it, "Want to be a Billionaire? Solve a Billion-Person problem." Diamandis co-founded Singularity University with a mission to educate and inspire leaders to leverage exponential technologies to solve humanity's grand challenges.

I can't help but chuckle at people who proudly declare their aversion to social media platforms like Facebook and Twitter. To me, what they're really saying is that they're content to let the world evolve around them. Having a Facebook account isn't the main issue; it's important to grasp the broader context and potential of these platforms, looking beyond their negative reputation. If you're trying to reach a target audience and don't know what a Facebook "dark post" is, you've already lost the game.

Is opting out an option? Absolutely. But if you find yourself complaining about your life circumstances, it's time to get plugged in. The barrier to entry isn't financial; it's psychological. Changing your mindset can be a far more daunting task than accumulating wealth.

Let's delve into the intriguing psychology that differentiates billionaires, millionaires, and what society often labels as "ordinary people," particularly in the tech-savvy landscape of Silicon Valley.

Millionaires

Especially those in the tech industry, excel at identifying and navigating systems that generate value—think successful startups. They're not just good at landing lucrative roles in these companies; they're also adept at assimilating into the company culture. They adopt and even amplify the values of their work environment, becoming evangelists who bring in like-minded, talented friends. Their worldview is one of moderate fluidity; they see a world that's changing but believe they can carve out a comfortable niche within it. In essence, they're excellent players in an existing game, but they're not necessarily looking to change the rules.

Billionaires

These are the rule-breakers and the game-changers. They perceive the world as a malleable construct, ripe for reshaping. They're the visionaries who identify glaring gaps in existing systems and then relentlessly pursue filling those gaps. Their work ethic is nothing short of Herculean; they're the ones burning the midnight oil, day in and day out, often blurring the lines between personal and professional life. They're not just participating in a culture; they're creating one, complete with a set of guiding principles that attract other brilliant minds. These are the people who don't just adapt to the world; they aspire to change it.

Ordinary

Then there's the group often labeled as "ordinary," who are largely disconnected from these burgeoning sectors of the economy. Take, for example, someone living in a declining industrial town. The opportunities for monumental success are limited, not by their abilities, but by their circumstances. Yet, this wasn't always the case; think of the Ford family and the automotive boom of the early 20th century. Henry Ford, the founder of the Ford Motor Company, managed to revolutionize the automobile industry with his innovative assembly line and mass production techniques. His vision and determination allowed the Ford family to capitalize on the growing demand for cars and achieve immense success. The point is, while location and timing can be crucial, they're not the only factors at play. Other elements, such as vision, innovation, and determination, can also contribute to one's success.

Mindset

Across all these categories, mindset emerges as the universal key. Whether it's the oil booms of the 1950s in Texas, the automotive industry in the 1910s Michigan, or the tech explosion in modern-day Silicon Valley, the principles of ambition, vision, and adaptability remain constant.

So, while the landscape of opportunity may shift with time and location, the fundamental psychology that separates the extraordinarily successful from the rest is remarkably consistent. It's not just about being in the right place at the right time; it's also about having the right mindset to seize those opportunities when they come your way.

The Local Concept: The Silent Crisis of Under Accumulation

While it's true that not everyone aspires to be a billionaire, it's important to acknowledge that most billionaires didn't necessarily set out with that specific goal in mind. Their focus was often on solving problems or creating innovative solutions that had the potential to transform industries. The accumulation of wealth was a byproduct of their relentless drive and passion for their work.

That said, there is merit in striving for financial security and freedom without necessarily aiming for a billion-dollar net worth. For many individuals, the primary concern is achieving a level of wealth where money ceases to be a constant worry. This allows them to focus on personal growth, relationships, and other aspects of life that contribute to overall well-being.

The pursuit of financial stability is not merely about amassing material possessions; it's about ensuring a comfortable lifestyle and providing for oneself and one's family. It also offers the opportunity to give back to society through philanthropy or supporting causes close to one's heart. Ultimately, having enough wealth to meet basic needs and aspirations can lead to greater happiness and fulfillment.

A critical step towards achieving this goal is understanding the importance of financial literacy and adopting healthy money habits early on. By learning how to budget, save, invest strategically, and live within one's means, individuals can build a strong foundation for financial success.

Additionally, embracing an entrepreneurial mindset – even if you don't aspire to create the next tech giant – can open doors for new opportunities and growth. This mentality encourages resourcefulness, resilience, adaptability, and risk-taking – valuable attributes that can help anyone achieve greater financial security over time.

Being "plugged in" doesn't necessarily mean chasing after billions in wealth but rather staying informed about trends shaping our world today. It involves recognizing opportunities for personal growth while striving towards financial stability – an ambition shared by many across different walks of life. By adopting a proactive approach and cultivating an entrepreneurial spirit, one can attain a level of wealth that allows for a more fulfilling and worry-free existence.

In the United States, there's a less-discussed crisis: the phenomenon of the Under Accumulator of Wealth (UAW), as described in the book The Millionaire Next Door. A UAW is someone whose net worth is disproportionately low compared to their income. That is if their net worth is less than the product of their age and one tenth of their realized pretax income. Take for example a 50-year-old earning $50,000, according to the formula they should have (50*50,000*10%) or about $250,000 in net worth. If their net worth is lower, they are an “Under Accumulator.” So why is this unfortunately a common category for someone to fall into? Let’s explore this by looking at the opposite. What does it take for someone to get out of this position?

One individual's journey to financial awareness, inspired by the principles of "Rich Dad Poor Dad," offers a compelling narrative. Starting work at the tender age of 13, this person was initially a spendthrift, squandering earnings on the latest fashion and gadgets. The wardrobe was a walking advertisement for Abercrombie & Fitch, and the shoe collection featured Lacoste. It was all about appearing "cool," but at what cost?

The realization hit hard: the pursuit of materialistic desires yielded zero long-term benefits. After reading "Rich Dad Poor Dad," a paradigm shift occurred. The focus shifted from conspicuous consumption to conscientious saving and investing. Today, this individual may not flaunt the latest tech or dine at trendy restaurants, but what they lack in flash, they make up for in financial security.

While some may label this newfound frugality as "uncool," the individual is far from financially strained. In a society where nearly half of the population reportedly struggles to muster $2,000 for emergencies, this person stands apart. At just 21, they boast a robust savings account, retirement fund, life insurance, and a diversified investment portfolio that includes precious metals like gold, silver, and palladium.

The takeaway here isn't about amassing wealth but acquiring the wisdom to manage money effectively. The individual may not be wealthy in the traditional sense, but they are rich in financial literacy, a skill that promises a future unburdened by financial woes.

So, while they may not be rolling in riches, the knowledge gained from "Rich Dad Poor Dad" has set them on a path of financial stability and independence. It's a testament to the transformative power of financial education, proving that the real treasure isn't just in accumulating wealth, but in understanding how to sustain it.

The Bottom Line: It's a Lifestyle, Not a Milestone

In conclusion, the journey towards financial stability and success is far from straightforward. The notion that only a select few can attain wealth is not accurate; however, it does highlight the level of difficulty associated with breaking into the 1%. If achieving such status were as simple as following a set of steps or adopting a specific mindset, we would see a much larger percentage of individuals thriving financially.

The reality is that reaching this level of success requires a combination of factors: perseverance, adaptability, financial literacy, an entrepreneurial mindset, and being "plugged in" to stay informed about our rapidly changing world. It's crucial to recognize that this journey will be filled with challenges and setbacks; overcoming these obstacles is what differentiates those who ultimately succeed from those who don't.

Moreover, it's essential to remember that wealth accumulation should not be the sole focus in life. Striving for financial security should go hand-in-hand with personal growth and nurturing meaningful relationships. Ultimately, true happiness stems from striking a balance between material success and emotional well-being.

The path towards joining the 1% may be arduous and fraught with difficulties, but it's important not to lose sight of what truly matters in life. Success isn't solely defined by one's net worth; rather, it encompasses a myriad of aspects that contribute to overall fulfillment and contentment. By maintaining perspective and persistently working towards your goals—financial or otherwise—you stand a better chance at carving out your own unique version of success in today's complex world.

As Tom Hanks eloquently said in A League of Their Own,

"It's supposed to be hard. If it were easy, everyone would do it."

Ultimately, perhaps the goal shouldn't be to join the 1%. Instead, aim to expand that top seemingly unreachable percentage to one large enough that encompasses you. Embrace an abundance mindset when it comes to wealth. Don't feel the need to join an exclusive club; believe that you can lead a new chapter in a constantly growing membership.